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Benefits of Starting a Business in Malaysia

S&F Consulting Firm Ltd
01 February, 2019

Since the last decade Malaysia becomes one of the favorite spots for business. Malaysia's growing economy has turned Malaysia into a hot business zone in South East Asia. If you are thinking of starting a business in Malaysia, you are thinking wisely. The government of Malaysia is providing more opportunities to attract more IDI in the country. However, Malaysia's increasingly strong economic prospects and significant investment programs makes this country more attractive to overseas investors. Some of the benefits of starting business in Malaysia are stated below: -

Lower Corporate Income Tax

Compared to other countries, Malaysia's corporate income tax is comparatively low. If your business has an income of RM 500000 or less, you need to pay just 20 percent tax. However, the Malaysia government decision to reduce the tax to 19 percent in the coming years. This means that you do not need to worry much about corporate tax.

Educated Workforce

Malaysia is a multicultural and multi-religious country. This can make this country a little bit difficult for foreign entrepreneurs to deal with the local customer. However, thanks to this educated workforce, who can help foreign entrepreneurs to deal with the local customer. The majority of the Malaysian workers are highly educated. They have the acquired skills that an organization requires to function correctly. The workforce of Malaysia has become one of the most important points among all foreign organizations.

Supportive Government Policies

For many years Malaysian governments have been successfully implementing and conducting business policies. The well-developed financial sector of Malaysia supports all the investors. Any business licence Malaysia related problems are resolved quickly by both local authorities and federal and state government. Liberal policies continue in good and bad times, encourage investments, and achieve economic success.

Developed Infrastructure

In the past few decades, Malaysia's infrastructure has developed into an effective logistics hub. Reconstructed maritime and air connection enable multinational companies to manufacture in Malaysia and deliver the product or service to other parts of the world. Its excellent road condition and adequate railways provide easy access to other parts country.

Flexible Banking System

The flexible banking infrastructure of Malaysia makes it easier for foreigners to have more than one foreign currency accounts. The bank also provides the facilities for managing the bank account via online/internet. However, there are mainly two types of bank in Malaysia that is offshore and onshore. Personal banking in different currencies is also accessible to Labuan entrepreneurs, who have a current residence visa.

Quality of life

Besides many business benefits, Malaysia has many more to offer. The quality of life in Malaysia is much better, its natural beauty and culture diversity makes it something to praise. Every year a vast number of tourist and business person visit Malaysia. Malaysians are often described as friendly and hospitable, modest and helpful.

Some Interesting Facts

  • Malaysian government now allows foreigners to establish 100% foreign owned companies.
  • Malaysia is currently ranked 24th among global trading nation.
  • Multinational companies all round the world have invested in more than 65000 projects in Malaysia.
  • According to word bank business report Malaysia is ranked 6th when it comes to ease of doing business.
  • Malaysia is currently ranked among 10 most attractive countries for foreign direct invest.


Setting up business in Malaysia is not complicated. If you follow some basic rules, regulations you can set up a company in Malaysia easily. The Malaysian government provides lots of flexibility and opportunities to attract more foreign investors. For protecting your investment within Labuan company, Malaysian government permits you and your dependents to obtain two years' work permit. However, the work permits are subjected to renewable.


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